The popular RX currently starts from $82,814 (plus on-road and dealer costs) for the soon-to-replaced RX350 Prestige, which is likely to take a price cut similar to the recently launched GS large car.

Lexus Australia hasn't officially confirmed the new model, but the company's invitation to the media launch of the RX refers to "the introduction of a new variant".

On sale across Asia, the RX270 is powered by a 2.7-litre four-cylinder petrol engine that produces 138kW of power and 252Nm of torque. Unlike its all-paw siblings, however, power is sent to the front wheels only via a six-speed automatic transmission.

The current RX range is powered by either a 204kW/364Nm 3.5-litre petrol V6 or a 220kW petrol-electric hybrid.

Toyota's luxury brand has made no secret of the fact that it desperately wants a smaller SUV to slot beneath the RX to compete in the booming compact luxury SUV segment, dominated by the likes of Audi's Q5 and BMW's X3.

"Clearly, our number one priority is an under-RX [soft-roader] vehicle – an Audi Q5 and [BMW] X3 competitor. It's no secret that we want one. The only secret is whether we'll get one," he said.

While it continues the long wait for a much-needed baby SUV, Lexus is looking at several ways to expand its model line-up, including fill price gaps in its line-up.

The pricing strategy follows a similar move by Mercedes-Benz, which recently launched a four-cylinder entry variant of its rivalling M-Class in lieu of smaller SUV offerings.

The 135-kilogram lighter RX270 will also be more fuel efficient than the RX350 thanks to the smaller engine and removal of heavy all-wheel-drive hardware.

It uses about 9.5 litres per 100 kilometres and emits 222 grams of CO2 per kilometre according to overseas specifications compared with the V6 model's official figures of 10.8L/100km and 254g/km. The petrol-electric RX450h remains the most frugal RX model recording 6.3L/100km and 149g/km.

As Drive has previously reported, Lexus will also add F Sport variants to the revised RX range featuring sportier styling and sharper driving characteristics, which proved popular with the CT, IS and GS models.